CS FOR SENATE BILL NO. 274(STA) "An Act relating to the disposition of forfeited, surplus, and unclaimed firearms by the state." This was the first hearing for this bill in the Senate Finance Committee. Senator Dyson, the bill's sponsor, informed the Committee that this bill would allow the State to sell confiscated but legal firearms for "a reasonable return". This would be contrary to previous [unspecified] administrations' actions of destroying such items. Both the Department of Public Safety and the Department of Administration support the proposed disposal methodology. 10:01:33 AM Senator Dyson stated that, while the majority of confiscated guns could be legally sold to the public, some guns are of a class that could only be sold to people holding Class 3 Firearm Dealer licenses. The "very few" firearms that are illegal for anyone to own, primarily due to such things as their barrel being cut off or their serial number being defaced, would be disassembled. The illegal portions would be destroyed and remaining legal components would be available to the public. Senator Dyson also noted the bill would continue to allow the Department of Public Safety to negotiate with firearm dealers for "a trade-in allowance" for new equipment in exchange for the confiscated firearm inventory. This practice would continue with the new provision that an annual report of the value of the trade-in items and the items received via that transaction be provided. Senator Dyson communicated that this legislation would also address the liability issue that was the basis of previous administrations' argument to destroy confiscated firearms. It would clearly denote that "the State has no more liability on selling of a firearm than they do on a pick-up truck or a dump truck or anything else that they surplus". Co-Chair Green recalled the liability issue being addressed previously. However, the effort must have been in the form of a resolution. Senator Dyson affirmed. 10:04:06 AM Senator Olson asked whether there has been any opposition to the bill. Senator Dyson responded in the negative. Senator Olson specified that his question primarily pertained to the position of firearm manufacturers. Senator Dyson stated that firearm manufacturers have not weighed in on the issue. This legislation would allow the general public to participate in the purchase of these items rather than continuing to limit it to individuals holding dealer licenses, as is the current practice. Senator Dyson shared the understanding that, in the past, a few dealers colluded to hold prices down by agreeing beforehand as to who would bid on certain parcels. As a result, the State was receiving "significantly less than the real value of the weapons". He reiterated that this allegation has not been confirmed. Nonetheless, allowing more people to participate in the firearm auction would enhance the State's ability to generate additional value from the surplus firearm effort. 10:05:33 AM Senator Bunde moved to report the bill from Committee with individual recommendations and accompanying fiscal notes. There being no objection, CS SB 274 (STA) was REPORTED from Committee with previous $22,500 fiscal note #1 dated February 23, 2006 from the Department of Administration and a new zero fiscal note dated March 31, 2006 from the Department of Public Safety.